SIIA Comments on FTC’s Proposed Rule for Impersonation Regulation of Government and Businesses

The Software & Information Industry Association (SIIA) has submitted comments in response to the Federal Trade Commission's (FTC) supplemental notice of proposed rulemaking regarding the trade regulation rule on impersonation of government and businesses.

SIIA supports the extension of the impersonation rule to individuals but expresses concerns about the proposed liability scheme for "means and instrumentalities." SIIA argue that this approach could lead to unintended consequences and suggest adjustments to the rule to address these concerns.

1. Extension of the Impersonation Rule to Individuals: SIIA supports the Commission's proposal to extend the prohibition to individuals, citing it as filling a gap in the existing rule.
2. Concerns About Means and Instrumentalities Liability: SIIA expresses concerns about the broad application of means and instrumentalities liability, suggesting that it could deter legitimate commercial activity, create compliance challenges, and stifle online speech. They propose adjustments to the rule to mitigate these risks.
3. Proposed Adjustments to the Rule: SIIA suggests modifications to the proposed rule text to limit liability to goods and services designed to defraud and to ensure consistency with statutory and constitutional authority.
4. Request for Additional Process: SIIA requests further analysis and public feedback on the proposed means and instrumentalities liability rule, suggesting renewing the preliminary regulatory analysis and holding an informal hearing to address disputed issues.